It is official: the government of Louisiana accepts payments in Bitcoin and cryptocurrencies.
It was publicly announced on X by the State Treasurer, John Fleming.
LOUISIANA STATE GOVERNMENT ACCEPTS FIRST CRYPTOCURRENCY PAYMENThttps://t.co/C9NqQbpEyo
Louisiana State Treasurer, John Fleming, M.D. announces an innovative transition with state government's plan to accept cryptocurrency as a valid form of payment. pic.twitter.com/b9B0OK7Al9
— John Fleming, MD Louisiana State Treasurer (@LATreasury) September 18, 2024
Payments in Bitcoin and stablecoin: the government of Louisiana welcomes them with open arms
In the official press release shared by Fleming, it is explicitly stated that the government of the State of Louisiana has accepted the first cryptocurrency payment.
The official announcement was made by Fleming himself, who spoke of an innovative transition thanks to the state government’s plan to accept criptovalute as valid forms of payment. This will allow the integration of digital currency into the public operations of Louisiana.
In essence, residents of Louisiana now have the possibility to pay state services directly with their non-custodial crypto wallets, and they can do so in BTC, both on the layer-1 of Bitcoin and via Lightning Network, and in USDC (USD Coin).
The first crypto payment has already been made to the State’s Department of Wildlife and Fisheries.
To enable this, a service called Bead Pay is used, which converts the crypto into dollars before depositing them into government accounts. In this way, the citizen pays in cryptocurrencies, but the State receives dollars, as if the payment had been made with a credit or debit card.
The idea is to promote the adoption of new technologies in the State’s infrastructure, on one hand, while on the other hand, it aims to protect the State itself from the value fluctuations of crypto.
Bead Pay
Bead Pay is a company that facilitates the acceptance of cryptocurrencies specifically for governments and businesses, based in Louisiana.
Thanks to the automatic and immediate conversion of crypto payments into local currency, it eliminates the complexities of holding, converting, or understanding cryptocurrencies for those who still want to offer the possibility of paying in cryptocurrencies.
Furthermore, in this way it ensures that the total amount is received net of the volatility of the market value of cryptocurrencies.
Bead Pay in summary allows third parties to integrate cryptocurrency payments into their e-commerce payment platforms and point-of-sale without having to adapt to new collection methods.
The integration of cryptocurrency payments in state agencies of Louisiana is precisely the result of a collaborative effort between the State and Bead Pay as a partner.
The advantages
The official statement also mentions what should be the advantages of offering payments in cryptocurrency through a third-party partner like Bead Pay.
First of all, the reduction in the number of possible fraudulent transactions, given that the partner is still subject to legal obligations regarding anti-money laundering (AML) and verification of the payer’s identity (KYC).
Furthermore, as already mentioned, it will not oblige the State to manage or hold cryptocurrencies, thus avoiding having to comply with the volatility of their prices.
Finally, it makes it possible for citizens to use any crypto wallet, including private non-custodial ones.
The primacy of the Louisiana government in accepting Bitcoin and stablecoin
Louisiana is certainly not one of the richest and most technologically advanced states in the USA.
Its GDP per capita is slightly below $70,000, more than the $51,000 of Mississippi, but much less than the $114,000 of the State of New York.
Even Wisconsin, Rhode Island, and Alaska do better.
Despite this, it seems to be the first State in the USA to accept payments in cryptocurrencies.
In reality, however, it does not accept cryptocurrencies as payment for state services, but adds the payment option in crypto for its citizens.
The real turning point will come when governments start accepting revenues directly in crypto, without going through automatic and immediate exchange services like Bead Pay. Probably from this point of view, they will start by accepting stablecoin, such as USDC, which are crypto versions of digital currencies, and then perhaps in the future also move on to accepting Bitcoin (BTC), and maybe even Ethereum (ETH).
The comments on the new initiative
John Fleming stated:
“In the current digital era, government systems must evolve and embrace new technologies. By introducing cryptocurrencies as a payment option, we are not just innovating: we are offering our citizens flexibility and freedom in interacting with state services. Furthermore, this unique innovation protects our state from any volatility associated with cryptocurrency”.
The CEO of Bead Pay, Jay Sykes, added:
“As one of the pioneers in the field of cryptocurrency transactions, our role is to ensure that these payments are not only efficient but also secure. We focus on removing the traditional barriers associated with cryptocurrencies, such as volatility and fraud risks, making it a reliable option for government transactions”.
The deputy of the State of Louisiana Mark Wright also expressed a favorable opinion, who has supported this cause throughout his career.
Wright stated that he is proud to have drafted several bills related to digital assets, and to have chaired the State Treasurer’s task force in 2022.
He added:
“I am excited to see Louisiana further expand its payment options under the leadership of Treasurer Fleming. I look forward to working with him and others to ensure that Louisiana continues to be a leader in the acceptance of digital payments”.
